Plano & Plano Desenvolvimento Imobiliário S.A. (PLPL3) Q4 2024 earnings summary

Executive summary

• Achieved historic records in launches, net sales, net revenue, and net income in 2024, driven by strong performance in the private market and affordable housing segments.

• Net revenue reached BRL 2.6 billion in 2024, up 25% year-over-year; net income rose to BRL 343.8 million, a 28% increase over 2023, with net margin improving to 13.3%.

• Maintained leadership in affordable housing, especially in the Minha Casa, Minha Vida and Pode Entrar programs, with over BRL 1.1 billion in contracts.

• Reinforced sustainability and governance, earning LEED Gold certification, joining the B3 IDIVERSA Index, and launching the Plano&Plano Institute for ESG and social initiatives.

• Focused on sustainable growth, risk mitigation, and investments in technology, processes, and manpower.

Financial highlights

• Net sales totaled BRL 3.4 billion in 2024, up BRL 207 million from 2023; private market net sales reached BRL 3.0 billion, up 26.2% year-over-year.

• Adjusted EBITDA was BRL 447.0 million, up 20.6% year-over-year, with a margin of 17.3%.

• Operating cash generation totaled BRL 247.9 million in 2024.

• Dividend payout reached a record BRL 200 million, with a payout ratio of 58.2% and a dividend yield of 11%.

• Cash and cash equivalents rose to BRL 801.5 million, up 88.4% from 2023.

Outlook and guidance

• Management is optimistic for continued growth in 2025, expecting to maintain or exceed current performance levels, with a focus on profitability and efficient risk management.

• Landbank expanded to a record BRL 27.6 billion in sales potential, up 131.6% versus 4Q23, supporting future growth.

• Plans to keep payout ratio above 50% if positive cash generation continues.

• Inflation expected to be managed at around 5.5% internally, below the INCC benchmark.

• Revenue to be appropriated in 2024 increased by 54% compared to 2023.